Country Overview

The Republic of Palau consists mainly of an archipelago in the western Pacific Ocean located at approximately 7 degrees North latitude and 134 degrees East longitude. Palau is the westernmost island cluster of the six major island groups that make up the Caroline Islands. The main Palau archipelago is located approximately 800 kilometers east of the Philippines and 800 kilometers north of the island of New Guinea. The western Caroline Islands are exposed peaks of undersea ridges stretching between Japan and New Guinea, and are not located on the Pacific Plate, as are the eastern Carolines. The Palau islands originated on the now dormant southern section of the volcanic Palau-Kyushu Ridge, which formed about 43 million years agoin a complex series of rifting and boundary shifts of the Pacific Plate margin during the formation of the Philippine Basin (Kroenke, 1984).

The main Palau archipelago stretches approximately 200 kilometers in a predominantly north south orientation from the atoll of Ngeruangel in the north to the island of Angaur in the south. In addition to the main archipelago, there are 5 small islands and one atoll (the so-called Southwest Islands) located some 300-500 kilometers to the southwest of the main archipelago and less than 200 kilometers north of the nearest islands of Indonesia. Palau consists of 586 islands, of which only twelve are continuously inhabited. Total land area is 535 km2 and the lagoons around some of the islands encompass more than 1135 km2.

The islands of Palau represent five geological island types, volcanic, high limestone, low limestone, atolls, and a combination of volcanic and limestone (US Army 1956). The largest islands, such as Babeldaob, were formed by Eocene volcanic activity and are composed of basalt and andesite. They tend to have a high profile, well-developed perennial stream systems, and a high diversity of terrestrial flora. Babeldaob, the largest island in Palau, has severely leached and highly acidic soils, unsuited for large-scale agriculture. The world-famous “Rock Islands” are of limestone formation. Kayangel atoll, at the northernmost tip of the archipelago, is a classic coral atoll. Peleliu and Angaur, located at the southern end of the main archipelago, are low platform and reef islands. The Southwest group of islands, 300 to 500 kilometers to the southwest of the main archipelago, is made up of reef flats that have been subjected to uplift, and one atoll (Helen Reef).

Babeldaob island is the largest in the Palau island chain, and the second largest island in Micronesia. Babeldaob constitutes seventy-five percent of Palau’s total landmass. At its greatest width, Babeldaob reaches fifteen kilometers across (APCC, 2001 in NBSAP, Government of Palau 2007). The highest point on Babeldaob, Mt. Ngerchelchuus, also the highest point in Palau, is 275 meters above sea level. With the exception of Kayangel, Angaur, and the Southwest Islands, all of the Palau islands are located within one barrier reef. Palau’s territorial seas extend 12 nautical miles, with a 200-nautical mile exclusive economic zone (EEZ) which encompasses an area of approximately 600,900 square kilometres (Sant and Hays, 1996 in NBSAP, Government of Palau 2007)

By 2020, community resilience is strengthened through the establishment of sound institutional arrangements that are based on dynamic traditional systems, improved capacity building, a robust labour force, and effective emergency preparedness.

VISION: Vulnerable communities have the knowledge and understanding of the hazards and risks to which they may be exposed to, in order to take appropriate actions to save lives an projects properties and the environment.

VISION: DRR programs are fully integrated at the national, state and community levels and address priority hazards, community development, and disaster coping mechanisms, and the include relevant traditional mechanisms, and that include relevant traditional knowledge and practices.

A 30% reduction in energy consumption by 2020, recognizing that improving the efficiency of energy use has greater short term impact on reducing fossil fuel consumption of fossil energy than any other action; with taxes and policies revised to encourage the import and sale of: appliances, vehicles, and boats having the highest energy efficiency; and with development of energy efficiency standards for new buildings and renovations including homes, businesses, and government premises.

Renewable Energy

20% contribution of renewable energy to the energy mix by 2020, eventual long-term substitution of all fossil fuels with renewable energy, and minimizing Palau’s carbon footprint, recognizing that renewable energies have the potential to reduce dependency on imported fuels and reduce the country’s vulnerability towards price shock.

Electric Power

A secure and diverse electrical power supply using technically and economically feasible methods while ensuring sustainability, quality and continuity of existing electrical generation, distribution, and transmission systems.

VISION: Palau’s enabling framework for good governance (effective, transparent, accountable, responsive, well-coordinated) is established to build resilience to climate change and disasters and manage the transformation to a low carbon economy utilising traditional and elected governance systems.

In strengthening its institutional mechanisms for effective policy implementation to respond to climate change, Palau guides it’s governance by the following vision:

“Palau’s enabling framework for good governance (effective, transparent, accountable, responsive, well-coordinated) is established to build resilience to climate change and disasters and manage the transformation to a low carbon economy utilising traditional and elected governance systems.” (National Climate ChangePolicy, p.26, Government of Palau 2015).

Existing Governance

There is no central focal point for climate change within the Palau government. The Office of Environmental Response and Coordination (OERC) within the Office of the President have the role of coordination within the Environment Sector and house a National Climate Change Coordinator position. The Palau Grants Office is the National Focal Point for both the Adaptation Fund and the Green Climate Fund under the UNFCCC. The Vice President’s Office houses NEMO. NEMO is also the Secretariat for the National Emergency Committee.

Engagement by communities in building climate change resilience has been limited by competing interests, minimal capacity and understanding, and confusion arising from ad hoc government and partner projects on climate change that have not been aligned or coordinated. The absence of a central focal point for climate change and disaster risk programming has resulted in a limited ability to keep key stakeholders engaged over a sustained period of time, while the absence of core budget support from government for climate change programming has resulted in understaffed institutions with inadequate resourcing (human, technical, and financial) to effectively manage pressing climate change and disaster risk management priorities. Capacity assessments determined that within sectors:

There is some understanding on vulnerabilities to risks from climate change or disasters.

There is limited understanding of mechanisms/strategies to manage risks.

There is limited information on energy efficient or renewable energy technologies.

There is limited understanding of how to transition to energy efficient or renewable energy operations.

Establish procedures and processes to mainstream climate change and DRR into environmental impact assessments (EIA), and sector and state planning and budget processes

Assist government agencies with integrating climate change and disasters into their policies/programs and annual work plans

Assist State Governments, private sector, and civil society in identifying risks from climate change/disasters and activities to transform to a low carbon economy

Establish databases and baseline information to monitor and report on effectiveness of the implementation of this Policy and ensure accessibility by the public at large to climate change information and data

Improve reporting to the UNFCCC, ISDR Sendai Framework for Disaster Risk Reduction, and other international conventions and regional strategies to which Palau is a party

Strengthen its institutional capacity so that it can qualify and register as a National Implementing Entity (NIE) under the Adaptation Fund and Green Climate Fund

Prepare proposals for submission to the Green Climate Fund and other development partners to implement the 5-year Action Plan

The climate changepolicy establishes, at the highest political level, a single integrated Government Policy with priorities and interventions to establish appropriate institutional frameworks and guide and inform actions that will meet the stated objectives. This Policy articulates Palau’s priority interventions on climate change across all sectors, at all levels (community, state, national, and international). It informs national budgeting and government spending in relation to climate change and in synergy with ongoing economic development and environmental and climate change initiatives. Palau’s Climate ChangePolicy and Action Plan form the basis for Palau’s National Adaptation Plan (NAP) and National Appropriate Mitigation Actions (NAMA) and Intended Nationally Determined Contributions (INDC) that will also inform and facilitate access to international climate change financing under the UNFCCC’s Green Climate Fund and Adaptation Fund

Palau’s Medium Term Development Strategy – Action for Palau’s Future 2009–2014 sets out key strategies and actions to help achieve economic, social, environmental and cultural goals and is clearly linked to the National Master Development Plan – Palau 2020. Underpinning the MTDS is the overall goal of ‘a sustained and widespread improvement in general standards of living while preserving cultural and environmental value for the people of Palau’. The following five priority policy actions have been identified to ensure meaningful focus and effective commitment:

The Palau National Climate ChangePolicy (2015) identified climate changeadaptation as one of its key priorities to be addressed. The Policy is considered the single integrated Government Policy with priorities and interventions to establish appropriate institutional frameworks and guide and inform actions at all levels (community, state, national, and international). It informs national budgeting and government spending in relation to climate change and in synergy with ongoing economic development and environmental and climate change initiatives.

By 2020, community resilience is strengthened through the establishment of sound institutional arrangements that are based on dynamic traditional systems, improved capacity building, a robust labour force, and effective emergency preparedness.

By 2020, Palau’s educational system will include coordinated climate change and disaster risk information in its school curriculum and offer educational outreach to the broader community

For detailed information on the interventions, actions, time-frame, responsible lead and supporting agencies for each intervention and action, as well as indicative costings and indicators, please download a copy of the Palau Climate ChangePolicy.

The most recent climate analyses on the current climate of Palau (2014) show warming trends are evident in both annual and half-year mean air temperatures at Koror from 1951. The annual numbers of Warm Days and Warm Nights have increased and the annual number of Cool Days has decreased. These temperature trends are consistent with global warming.

The annual, half-year and extreme daily rainfall trends show little change at Koror since 1948.

Tropical cyclones (typhoons) affect Palau mainly between June and November. An average of 28 cyclones per decade developed within or crossed the Palau Exclusive Economic Zone (EEZ) between the 1977 and 2011 seasons. Seventy-three of the 85 tropical cyclones (86%) between the 1981/82 and 2010/11 seasons were weak to moderate events (below Category 3) in the Palau EEZ. Available data are not suitable for assessing long-term trends.

The variability of wind-waves at Palau is characterised by trade winds and monsoons seasonally, and the El Niño–Southern Oscillation (ENSO) and Inter-Tropical Convergence Zone (ITCZ) location interannually.

The risk of coral bleaching will increase in the future (very high confidence);

Sea level will continue to rise (very high confidence); and

A reduction of wave height in December–March is projected in 2090 but not 2035, with a slight decrease in wave period (low confidence). In June–September a small decrease in period is projected, with a clockwise rotation toward the south (low confidence).

The Palau National Climate ChangePolicy (2015) identified education as one of the key strategic areas of the adaptation goal. The strategic education objective is: by 2020, Palau’s educational system will include coordinated climate change and disaster risk information in its school curriculum and offer educational outreach to the broader community.

The government outlines five (5) strategic interventions for education that is incorporated into the first five year action plan of the climate changePolicy. These interventions are listed in the table below against their end of five year indicators:

Education Objective: By 2020, Palau’s educational system will include coordinated climate change and disaster risk information in its school curriculum and offer educational outreach to the broader community

The Palau National Climate ChangePolicy (2015) identified climate changemitigation as one of its key priorities to be addressed. The Policy is considered the single integrated Government Policy with priorities and interventions to establish appropriate institutional frameworks and guide and inform actions at all levels (community, state, national, and international). It informs national budgeting and government spending in relation to climate change and in synergy with ongoing economic development and environmental and climate change initiatives.

A 30% reduction in energy consumption by 2020, recognizing that improving the efficiency of energy use has greater short term impact on reducing fossil fuel consumption of fossil energy than any other action; with taxes and policies revised to encourage the import and sale of: appliances, vehicles, and boats having the highest energy efficiency; and with development of energy efficiency standards for new buildings and renovations including homes, businesses, and government premises.

Renewable Energy

20% contribution of renewable energy to the energy mix by 2020, eventual long-term substitution of all fossil fuels with renewable energy, and minimizing Palau’s carbon footprint, recognizing that renewable energies have the potential to reduce dependency on imported fuels and reduce the country’s vulnerability towards price shock.

Electric Power

A secure and diverse electrical power supply using technically and economically feasible methods while ensuring sustainability, quality and continuity of existing electrical generation, distribution, and transmission systems.

For detailed information on the interventions, actions, time-frame, responsible lead and supporting agencies for each intervention and action, as well as indicative costings and indicators, please download a copy of the [Portal team – provide link of the Republic of the Palau National Climate ChangePolicy].

Palau is joining the community of nations, both industrialised and developing, in taking action to address the causes and impacts of climate change.

Palau is particularly vulnerable to the impacts of climate change, principally from sea level rise and the increase in extreme events (drought, flooding, Category 4 and 5 typhoons). Sea-level rise threatens vital infrastructure, settlements, and facilities that support the livelihood of island communities. Moreover, under most climate change scenarios, water resources in small islands are likely to be seriously compromised. Subsistence and commercial agriculture will be adversely affected by climate change, and ocean warming and acidification will heavily impact coral reefs, fisheries, and other marine-based resources crucial to our livelihoods, economy and culture.

Currently Palau is working to increase the share of renewables in its energy mix and to increase energy efficiency (EE) initiatives. To date, total renewable energy (RE) efforts have only reached 8% of the needed 22%, principally because two grid-connected solar projects (1.5 and 3.5MW respectively) never came to fruition. Palau to date, however has achieved an approximately 30% reduction in energy use due to efficiency measures taken.

Current RE and EE policies and measures include a pilot loan subsidy for solar roof panels which will be increased to cover more homes if successful; a Home EE program at the Palau National Development Bank; prepaid metering at Palau Public Utilities Corporation; distribution of CFL light bulbs; government building retrofits; and a pilot Energy Audit program for large commercial buildings.

Business as usual (BAU) emissions scenario projections are based on economic growth in the absence of new climate changepolicies and measures in addition to those in place in 2015, and greater coverage and implementation of existing measures.

BAU projections include the electricity sector only, which is Palau’s largest emitting sector. BAU assumptions include a GDP per capita growth of 3.72% per year (historical 15 year CAGR) and EIA oil price projection in reference case as the basis for residential, government and commercial sector energy use growth projections. Commercial and energy use growth projection also took into consideration energy use by private generators in the tourism sector.

Emission from the waste management and transport sectors are not included in the BAU projection however emission reduction initiatives will be addressed on a project basis.

Palau’s INDC is grounded in the Palau Climate ChangePolicy, which was informed by input from communities, civil society and other stakeholders, as well as on the preparatory work for Palau’s second National Communication which was also widely consulted.

The Republic of Palau’s total emissions are de minimis in the global context. Given Palau’s remoteness, the small size of the economy, low GDP per capita, dependence on partnership support and vulnerability to climate change, Palau’s proposed targets are ambitious and fair as measured against other nations.

Under the BAU scenario emissions would be 140,000 tCo2e in 2025, compared to 68,000 tCo2e if both the RE and EE targets are met.

Emissions in 2005 were approximated at 88,000 tCo2e. Full implementation of the RE and EE strategies outlined in the ‘Future Policies and Measures’ section below puts Palau on a trajectory to reducing emissions by half as against BAU in 2025, the equivalent of 22% under 2005 emissions levels.

To achieve the RE target Palau will need considerable additional installed capacity, including the 5MW of solar already planned (2 or more solar projects plus additional roof-top solar) plus an additional 10MW to power the water sector. Palau will also hav eto work to reduce transmission and distribution losses. (Solar Capacity Factor is assumed to be 15.3%).

To implement the EE target, Palau will:

Increase the Energ Retrofit Program;

Institute a Tropical EE Building Code;

Adopt the Energy Start Appliance Standard;

Implement an Energy Labelling Scheme;

Significantly expand our Cool Roof Program;

Expand Energy Audit program to include all government and non-government buildings;

The following references have been used to develop the country profile. It is important to note that contributions are from local, regional and international agencies. The profile is reviewed by the national focal point for accuracy. We encourage you to contact the country contacts (focal points) if any documents cannot be accessed through the links.